Online Grocery Shopping Up Three-fold in April

The volume of orders for grocery deliveries online surged in April and could more than triple this year, according to the data released by e-commerce consultancy INFOLine, released on May 13, bne IntelliNews reported.

INFOLine’s data for the first quarter this year and April’s trading results surged and could rise 3.3x to RUB135bn ($1.8bn) in 2020, with the express delivery channel to top RUB30bn ($406mn), almost quadruple the RUB700mn of sales in the same period a year ago.

“In March-April, the demand for online food shopping surged after lockdown restrictions were imposed, while client acquisition costs diminished. Express delivery mimics the service of the convenience format and was particularly popular in densely populated areas. The key players saw April sales comparable with 1Q20, while leading players Yandex.Lavka and Samokat reached comparable turnover of RUB850-900mn, according to the agency,” reported VTB Capital (VTBC) in a note.

“In the medium term, e-grocery could be the most rapidly increasing segment of e-commerce, but turnover of RUB135bn in 2020 would still represent only 0.8% of the food retail market. Within online FMCG goods, INFOLine notes the leading position of Ozon in 1Q20, with turnover of RUB6.1bn. The roadmap for the e-grocery transformation is presented in our E-Grocery sector – Quarantine canteen, of 8 April,” VTBC added.

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